Which internal corporate governance provision do you feel has the best ability to limit agency conflicts? Why?

5 common internal governance provisions:

1. monitoring and discipline (threat to fire) by the board of directors
2. charter provisions and bylaws that affect the likelihood of hostile takeovers (remember that in general: shareholders like hostile takeovers, managers do not)
3. compensation plans
4. capital structure choices
5. accounting control systems

Governance is also affected by external factors that are outside of a firm's control.

1. regulations and laws
2. block ownership patterns
3. competition in product markets
4. the media and litigation